financetom
Business
financetom
/
Business
/
White House forces out CEO of passenger railroad Amtrak
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
White House forces out CEO of passenger railroad Amtrak
Mar 20, 2025 8:29 AM

WASHINGTON (Reuters) -The White House this week forced Amtrak CEO Stephen Gardner to step down as head of the U.S. passenger railroad after President Donald Trump sought the changes, two sources told Reuters.

Gardner said on Wednesday he will resign immediately, ending more than four years as head of the railroad, citing concerns about maintaining the carrier's support from the Trump administration.

"I am stepping down as CEO to ensure that Amtrak continues to enjoy the full faith and confidence of this administration," Gardner said in a statement.

A White House official told Reuters Gardner had been asked to step down. An Amtrak spokesperson declined to comment on whether he had been asked to leave.

Transportation Secretary Sean Duffy said in a statement that Amtrak needs to address safety concerns at Washington's Union Station.

"It's time for Amtrak leadership to clean up Union Station," he said. "It's time to rid our nation's treasures of homelessness and crime. Commuters and travelers need to feel safe in our capital."

Billionaire Elon Musk, who is advising Trump on plans to radically shrink the U.S. government, said earlier this month he thought Amtrak should be privatized.

Trump, during his first term, repeatedly sought to cut funding to Amtrak, which received about $2.4 billion in annual federal support in 2023. Congress last week approved $2.42 billion for Amtrak through September 30 in annual funding.

Amtrak said in December ridership topped 2019 pre-COVID-19 levels for the first time in 2024, reaching a record high even with less capacity.

Ridership increased over 15% in 2023 to a record 32.8 million customer trips, as passenger revenue hit $2.5 billion, up 9% over the prior year. The rail operator reported an adjusted operating loss of $705 million for the 12 months ended September 30, 2024, down 9% versus 2023.

Amtrak faced service woes over the last year. In November, it was forced to temporarily suspend all train service between New York and Washington due to overhead power issues in Philadelphia, disrupting the travel plans of thousands of riders.

Amtrak in March said it was boosting passenger services on the East Coast as it aims to double ridership nationwide by 2040 to 66 million passengers.

Congress approved $66 billion for rail projects as part of a massive infrastructure bill in 2021, with $22 billion dedicated to Amtrak over five years on top of regular funding.

In 2023, then-President Joe Biden announced $16.4 billion in grant funding for 25 rail projects on Amtrak's Northeast Corridor -- Boston to Washington -- the busiest U.S. rail corridor with 800,000 daily trips in a region representing 20% of the U.S. economy.

Many bridges, tunnels and other parts of the corridor are in serious need of repairs, especially a key tunnel connecting New York City and New Jersey.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Consumer companies confront tariff pricing dilemma
Consumer companies confront tariff pricing dilemma
Jul 30, 2025
(Reuters) -From toys to sneakers and diapers, consumer goods are the focus of a range of company strategies to blunt the impact of U.S. tariffs - depending on the size of their customers' wallets. Adidas said it could launch new products at higher prices in the U.S., Levi Strauss will cut back on promotions, and packaging giant Proctor & Gamble...
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Aug 17, 2025
SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to pay a A$55 million ($35.8 million) fine in Australia after the consumer watchdog found it had hurt competition by paying the country's two largest telcos to pre-install its search application on Android phones, excluding rival search engines. The fine extends a bumpy period for the Alphabet-owned internet giant in Australia,...
Lufthansa reports higher-than-expected Q2 earnings
Lufthansa reports higher-than-expected Q2 earnings
Jul 30, 2025
BERLIN (Reuters) -Lufthansa on Thursday reported better second-quarter results than expected, boosted by low oil prices and currency effects, and confirmed its full-year guidance. The German airline group reported an operating profit of 871 million euros ($995.29 million), compared with 805 million euros expected, according to an analyst poll compiled by Lufthansa. That's up 27% compared with 686 million euros...
Renault posts first-half loss of 11.2 billion euros
Renault posts first-half loss of 11.2 billion euros
Jul 30, 2025
PARIS (Reuters) -Renault reported a first-half net loss attributable to the group of 11.19 billion euros ($12.78 billion) on Thursday, including a one-off 9.3 billion euros from writing down its investment in partner Nissan ( NSANF ) flagged earlier this month. Revenues at the French car maker came in at 27.6 billion euros, up 2.5% compared with a year earlier,...
Copyright 2023-2026 - www.financetom.com All Rights Reserved